IMF anti crypto in Nepal

[_act_]

Cryptocurrencies is banned in Nepal, but bitcoin and other crypto adoption in the country continue to increase. Why should a country ban something very good like bitcoin? I do not care if they ban crypto, but any country that ban bitcoin only ban one of the human rights and freedom because of invalid reasons.

The IMF said crypto flows in Nepal grew markedly between 2019 and 2024 despite a legal ban, peaking above 13% of GDP in 2021.
It urged Nepal to regulate crypto under international standards, warning of capital-control evasion and deposit outflows.
An expert told Decrypt that trading and remittances keep crypto alive in banned markets, making regulation a smarter tool than prohibition.

Crypto is not a threat, but why is IMF so concerned. IMF that supposed to advise the country to legalized crypto because it is what the people in the country want.

https://decrypt.co/370738/imf-urges-nepal-monitor-crypto-as-usage-rises-despite-ban

[Dunamisx]

Bitcoin is also a cryptocurrency and there is no way they can ban crypto and decide to exempt bitcoin alone, do I understand your plight here? As bitcoin can not be compared to any other altcoin.

If we are also going to look at the event that happened in Nepal sometimes back, regarding the protest that struck the country as the Gen Z massive protest against their government action on social media clamp down and the likes, I think the leadership are still inconsiderate to hearken to the people's demands, I don't expect them to ban bitcoin as well, they may even take it more with stricter regulations than placing a ban, except they want another round two of the gen z protest in Nepal.

[Majestic-milf]

 The only thing I could derive from the "concern" the IMF is showing is that they don't want Nepal to get too carried away by crypto activities so that there'd would be a form of dependency on them because who doesn't know that Bitcoin is good for a a growing country? This was the same concern they showed when El Salvador was buying in bulk and it was going to affect the IMF and as such they are just being selfish by asking the authorities to put an eye on crypto activities.

[Joy_learns_crypto]

To think that the International Monetary Fund cares about countries like Nepal is laughable, The act like warning Nepal that Bitcoin would forge capital control evasion but that is just playing to the gallery because the International Monetary Fund is trying to stop Nepal from financial freedom.
I think Nepal has many economic problems that the International Monetary Fund couldn’t give them any information to guide them out.

[moneystery]

We understand their goal, they're unhappy with the growing adoption of Bitcoin and are trying to influence countries that need their help to create regulations that would discredit Bitcoin.
This is essentially a restrictive effort, and it seems ridiculous that the IMF is so determined to dissuade countries from Bitcoin. As far as I know, El Salvador also revoked its legal tender because of the IMF. So, their goal is clear from this.

[Ambatman]

This isn't their first rodeo
They did something similar to El Salvador
They are doing it to protect their interest because to them
Crypto pose a huge risk and shouldn't be granted legal status.
They don't care if it's revolutionary or anything what they care about is how it would affect their sovereign.

[BlackHatCoiner]

Bans never really work, that meaningless 13% of GDP figure proves people will use bitcoin regardless of what the law says. The IMF isn't worried about citizens, they're worried about losing control over capital flows.

Nepal would be better off regulating it properly than pretending a ban does anything but push activity underground. What can you say other than HFSP?

[EluguHcman]

Cryptocurrencies is banned in Nepal, but bitcoin and other crypto adoption in the country continue to increase. Why should a country ban something very good like bitcoin? I do not care if they ban crypto, but any country that ban bitcoin only ban one of the human rights and freedom because of invalid reasons.

Why are you sounding so emotional like the news from the Nepal banning Bitcoin amd crypto currencies in her place is your first experience.
I am definitely not going to be surprise at whatever level of restrictions and policies any government will place on the digital market.

Don't also forget that we are talking about Decentralized currencies here which is an opposite of the traditional monetary system that denies the authority control.
So selfish governments like this one and others that are showing this magnitude of restricting Bitcoin and Crypto currencies adoptions in her jurisdictions will always act this way because they can not control the monetary system and hijacks it to enrich themselves as they do with the fiats.

[Faisal2202]

Cryptocurrencies is banned in Nepal, but bitcoin and other crypto adoption in the country continue to increase. Why should a country ban something very good like bitcoin? I do not care if they ban crypto, but any country that ban bitcoin only ban one of the human rights and freedom because of invalid reasons.

If IMF has pointed this out then Nepal is going to be the next country to adopt cryptocurrency. The regime change last year or year before that (don't remember the exact one) must have left the country in a weak condition but that's not an excuse. These countries have real crypto users and once the exchanges have enough data on how many users are trading how much money then eventually the governments, IMF and the exchanges will form a coalition which won't be official but they will streamline the adoption of crypto by changing the laws.

I am saying this because it has happened with us. IMF was the first step, they said to tax the country because the country has taken the loan from them so they have a say, so after a long wait our country has officially accepted the crypto and now we are about to be taxed, this part is not my favorite one.

[Alphakilo]

Cryptocurrencies is banned in Nepal, but bitcoin and other crypto adoption in the country continue to increase. Why should a country ban something very good like bitcoin? I do not care if they ban crypto, but any country that ban bitcoin only ban one of the human rights and freedom because of invalid reasons.

If IMF has pointed this out then Nepal is going to be the next country to adopt cryptocurrency. The regime change last year or year before that (don't remember the exact one) must have left the country in a weak condition but that's not an excuse. These countries have real crypto users and once the exchanges have enough data on how many users are trading how much money then eventually the governments, IMF and the exchanges will form a coalition which won't be official but they will streamline the adoption of crypto by changing the laws.

I am saying this because it has happened with us. IMF was the first step, they said to tax the country because the country has taken the loan from them so they have a say, so after a long wait our country has officially accepted the crypto and now we are about to be taxed, this part is not my favorite one.

Not taxes again! But we should have been used to that by now. For the government to grant permission on the usage of any new technology or innovation, they must first try to understand how it would profit them in form of revenue and taxes and they would still seek to control its affairs by imposing regulations.

Am sure somewhere along the line the Nepal government will understand the important part Bitcoin and cryptocurrency has to play in improving their economy and even if they don't legally adopt it as a legal tender, may still allow it to be used for payments of taxes and remittances like some other government do, and am sure more citizens will have adopted cryptocurrency in the decentralized systems because of the ease and power of self soverignty it assures.

[Odogwu-Blockchain]

Banning crypto in any country had never been stopped, users had always been penetrating it's usage no matter what, there is nothing the government can do about it no matter how hard they try because crypto is already a digital product that can be owned, operated by everyone and from anywhere and by any class at all. Banning it, will have no effect on it, instead, it pushes in more users to trying and buying more crypto.

[Hamza2424]

To think that the International Monetary Fund cares about countries like Nepal is laughable, The act like warning Nepal that Bitcoin would forge capital control evasion but that is just playing to the gallery because the International Monetary Fund is trying to stop Nepal from financial freedom.
I think Nepal has many economic problems that the International Monetary Fund couldn’t give them any information to guide them out.

Bro you really don't mean this is laughable because it is really not. You might have underestimated Nepal, even if the OP has given a number that the spike in the adoption by these underground users in Nepal has increased and they covered 13% of Nepal's GDP, which is around $45.8 billion and 13% of that means $6 billion, so bro that's not a small amount. Even a 10% tax will generate enough funds for the country that they could pay off their $384 million loan back to the IMF.

If you still did not get why IMF is motivating the authorities to impose tax, it is because they want their funds back and when a country takes a loan from them, they interfere in their policies in return too.

[boyptc]

I see where it is going.

They're giving that anti crypto sentiment in Nepal because they're seeing the growth there.

And soon, it won't be surprising if they eases the sentiment and will start to give some proposals on how it can be acceptable.

Through regulations and taxes that they're going to impose. By that, they'll be looking like saviors in the country so it's a win win for the IMF.

[PrivacyG]

Crypto is not a threat, but why is IMF so concerned. IMF that supposed to advise the country to legalized crypto because it is what the people in the country want.

They are not concerned about Bitcoin unless they start losing control over the situation.  I believe most authorities like the way Bitcoin is being currently handled.  After all.  Most people are using it the way they want.  Centralized exchanges, Know Your Customer, Third Party custody, filing tax forms et cetera.

When the number of people who prefer Self Custody, no Know Your Customer, Decentralized or Private Exchanges et cetera.  That is when they start becoming worried about the situation and issue warnings to implement stricter rules.  Bitcoin can not be 'killed'.  The best thing they can do is pretend to not hate its existence and have a some what control over things.

[Darker45]

I don't expect no less than the IMF to advise a country to legalize Bitcoin. As a matter of fact, on the contrary, the body is trying hard to prevent its adoption. Especially at this point, it appears as if it's already alarmed at the speed of adoption Bitcoin has taken. Their advice seems to sound more serious than ever.

Perhaps they should realize by now that Bitcoin is more or less unstoppable. If the people choose Bitcoin, a law banning it would be helpless. Even IMF itself, a powerful global institution, can't stop it.

[X-ray]

Isn't the growth of crypto in there simply means the citizen prefer to have alternative, a safe haven for their wealth?

It's astounding that when the growth of crypto is high in a country, it's depicted as a bad thing, not as a good thing because the citizen have more choice which means more freedom.

Since IMF has also advised the same thing to El Salvador, this isn't shocking, but I hope moving forward we see crypto acceptance growth as something that implies more financial freedom to people.

[Nathrixxx]

IMF will never support anything that does not come through them because they believe that centralization is the ruling order of the world, I remember that they also discouraged El Salvador when making their decision to adopt bitcoin as a legal tender.

Anyone who is interested in cryptocurrency should make an independent decision without considering any alternative or government intervention with their interest in bitcoin or any cryptocurrency, the end result of going through the IMF is indebtedness, while bitcoin will give you the freedom that is required for your financial economy under its decentralized network.

[avp2306]

Cryptocurrencies is banned in Nepal, but bitcoin and other crypto adoption in the country continue to increase. Why should a country ban something very good like bitcoin? I do not care if they ban crypto, but any country that ban bitcoin only ban one of the human rights and freedom because of invalid reasons.

The IMF said crypto flows in Nepal grew markedly between 2019 and 2024 despite a legal ban, peaking above 13% of GDP in 2021.
It urged Nepal to regulate crypto under international standards, warning of capital-control evasion and deposit outflows.
An expert told Decrypt that trading and remittances keep crypto alive in banned markets, making regulation a smarter tool than prohibition.

Crypto is not a threat, but why is IMF so concerned. IMF that supposed to advise the country to legalized crypto because it is what the people in the country want.

https://decrypt.co/370738/imf-urges-nepal-monitor-crypto-as-usage-rises-despite-ban

Surprised about it? IMF is anti crypto and Bitcoin ever since. They always do that and to bad for Nepal they are low income country that's why I'm not surprised to see them followed what IMF suggest to do.

Remember what they did on El Salvador? They also suggest to remove Bitcoin as their legal tender https://www.bbc.com/news/world-latin-america-60135552

Also they continue to give this rough advice since 2022 https://www.pbs.org/newshour/economy/imf-urges-el-salvador-to-scale-back-its-push-for-bitcoin-as-legal-tender

Although El Salvador removes the mandatory acceptance of Bitcoin or make it as legal tender, still they have balls to continue their investment on Bitcoin.